Preparing title and paperwork

When preparing to sell a vehicle, you will want to make sure you prepare the title, transfer of ownership documents and any paperwork that goes with the sale.

Generally, as a private party selling to privately, to a dealer or auction, you will need to have a title that is free and clear of liens and in your name. If it is an electronic title, you might request a paper title for the transaction from your local department of motor vehicles. If there is a lien that has been released, you will want to make sure the bank has signed off with a signature and stamp, and include the lien release letter, although it’s cleaner if you can get a fresh title in your name.

If the title is in a business or trust, you will need to provide ( in many cases) LLC paperwork reflecting you can sign on behalf of the business or as trustee. Often, the first, second and last pages of a certified notarized copy of the trust is sufficient (showing name of the trust, trustee and trustee signature).

You will want to check with your department of motor vehicles to get a Bill of Sale, odometer statements or any paperwork that might need to accompany the title, based on your state and the situation. Third party DMVs are also extremely helpful with these kinds of things and expediting processes if need be.

Sometimes people have an “original” or unique ownership title that they want to pass on as provenance. Some states and departments of motor vehicles will provide or create a trophy title out of it, to pass on, while allowing for a new fresh title to be made and used for the current transaction. You can always make copies of old or original titles to pass on as provenance. Any other ownership paperwork or documents, receipts, certificates, reports, etc. can be organized into folders, and you might take photos to display as part of the listing for items that add value or significance. See about protecting any private personal information (yourself or others).

When ready to sell, you can often have the title notarized (if need be) at the same banking institution where the money is changing hands and being verified at the same time. If you are going through a dealership or auction house, they will take care of the transfer of ownership for you. Having everything ready to go helps prevent surprises that can slow down or cancel the sale.

Photo courtesy of Barrett-Jackson